There are three basics to keep in mind when looking for a comparative market analysis on your home or property. Several search sites such as Zillow, Trulia and Redfin have become popular tools for homeowners, especially those trying to grasp the value of their home. Use these resources with reservation as they do not provide an accurate picture of your home valuation. Your greatest tool in getting the most accurate home valuation is using a trusted real estate agent. We have outlined three basics to keep in mind below:
- Your Updates & Improvements Matter. The sites we mentioned above do not take into account the interior of your home. Improvements and upgrades add value to your home. A Comparative market analysis needs to take these things into consideration. The house next door may be similar on the exterior, but if you’ve updated your home using granite, quality finishes, added a deck, finished the basement, etc., these need to be considered in your valuation. If you use an online resource, it may claim your home and the one next door are of equal or similar value which means you are missing out on a significant amount of money.
- Consider Location and Neighborhood. In many areas, where value of homes vary from street to street or have pockets of new construction, it is important to understand which homes are truly comparable. An automatic system like Redfin or Zillow is flawed in that it will use incorrect properties for comps based solely on location and proximity. It is important to take into consideration your immediate neighborhood in addition to surrounding neighborhoods. This includes taking into consideration important factors like school district, proximity to shopping, highways and growing communities. These all contribute to the value of your home.
- Pricing a Home Should Only Be Done After a Market Analysis. Online resources can be off by 8% or more, which can mean thousands of dollars. Zillow states on its site “Zestimates should not be used to price a home.” Real estate agents have access to the MLS database to view comparable homes for sale, pending or sold. A realtor has the expertise and experience to provide comparable homes and use your home’s features to give you the most accurate valuation.
If you have questions about this or would like to set up a complimentary market analysis on your home, please contact Up North Properties by phone at 218-820-7355 or by email at sales(at)upnorthproperties(dotted)com.